ASX-listed services provider, Oakton (ASX:OKN), has downgraded its profit estimates for the first half of the financial year.
The company’s first half net profits are estimated to hit $6.5 million, nearly half the $12.5 million reported over the same period last year. In a statement to the ASX, managing director and CEO, Neil Wilson, attributed the results to the dire economic climate with limp Federal Government demand and delayed projects hitting hard.
The services provider said the earned value of a “small number of projects” were reassessed downwards to the order of $4 million. Oakton will provide an updated outlook on the remainder of the year at its results briefing on February 17. Representatives of the company had not returned calls at the time of publication.
In August 2008, Oakton posted record revenues of $201 million for the 07/08 financial year with a 75 per cent year-on-year increase. At the time, Wilson attributed the result to increasingly larger customer projects, along with the complete integration of Acumen, which Oakton acquired in May 2007.
Fellow ASX-listed services provider, UXC (ASX:UXC), has also warned its first half earning will be down by a “substantial amount” and late last year, trimmed its head count as a result of the tough economic climate.